Federal records show that Sunwing Airlines Inc. owes the Canadian government over $316 million in unpaid loans issued during the COVID-19 pandemic. The loans were granted in 2020 as part of a relief measure aimed at preserving jobs under the “Large Employer Emergency Financing Facility.” Sunwing has not paid any of the over $316 million in pandemic loans, and the Department of Transport has indicated there was a “significant risk” that the company would not be able to repay the borrowed funds without being bought out by WestJet. WestJet will be responsible for repaying the bulk of Sunwing’s outstanding federal loans upon closing, according to a legal notice issued by the Canada Transportation Act. The deal was approved by the federal government two months after hundreds of Sunwing’s passengers were affected by flight disruptions caused by winter storms and the breakdown of the airline’s digital communication service. The deal was approved with a number of conditions aimed at improving affordability and service deliverability within the air travel sector.